Standard of living denotes the living costs that are indicating the costs associated with living in a city, town or region. Countries that are developed have high costs of living affecting standards while those with underdeveloped status have lower costs of living.
Australia since past many years has seen or observed a lower cost of living than other major countries. Cities such as Melbourne, Adelaide and Sydney feature high living costs than other major cities like New York in USA. According to polls and research conducted online the results show six major cities of Australia are the highest in their living costs as yet.
High Living Costs
Differences in exchange rate between Australia and US dollar indicated a strong Australian dollar. This was cited as the main reason for high costs of living in Australia. Although not the only reason exchange rate between two countries can significantly alter the prices of common commodities found in either of the countries.
When Australian dollar has strengthened against the US dollar indicating high prices for Australian goods in the US market the living costs are dearer. This causes goods and services to be in demand in Australia with a very significant supply of commodities being tighter and rigid. Cash loans become a common necessity for many Australians to cover temporary financial problems such as delayed salary payments.
The high Australian dollar has also rendered Australian property in the capital cities to be overwhelmingly overpriced. A small apartment in the central business district of Sydney can cost the equivalent of a 5 bedroom house in the suburban areas of Texas. Short term caveats and mortgages become a prerequisite to property purchasing for most Australians.
Recent research data
As more goods are demanded at high costs their supply is becoming lesser. Evidently the most affected of the commodities in Australia is housing market where rent is high. The migration of people from the mainland as also other countries has changed. Research by Mercer (MNC research firm) has concluded that as regards to high living costs in Australia these are the most significant. The magazine Economist recently reported that Australia property markets are becoming overvalued. As a developed economy Australia is slated to offer high costs of living in their commodities, apartments and other services. Therefore the recent hike in living costs as research has suggested is quite evident.
A number of comparable cities like Tokyo, New York and Paris show even higher costs of living. Thus where Australia has high living costs leading to prices of commodities, quality of life – the way people go about their livelihoods is significant that much more. Thus living costs have had a direct effect on the living standards where the increase in living costs leads to living standards being high but not vice versa. Many people would ascertain or acknowledge this direct causation as one which is not easily comprehensible. Yet the relation has significant meaning. The resource endowments of the country are efficiently being utilized, the products and services are in demand in other countries and the level of investment enterprise or entrepreneurship is mature in Australia.
Recent advances in innovative technology support for scientific advancement and better livelihood from employment generation has attracted a lot of commerce. The defining quality of living standards becoming too costly is not seen in the country Australia. Here the high cost of living standards has permeated the development of good social and economic life such that the overall effect is one of steady progress.